What is the timing of the annual software license fee payment for a Brain Balance franchise?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
vices required to be performed by COMPANY on behalf of FRANCHISEE hereunder, until such time as FRANCHISEE has made payment of all amounts due to COMPANY and has filed all reports with COMPANY required to be filed by FRANCHISEE.
6.04. Application License Fees
- (a) FRANCHISEE shall enter into a Application License Agreement annexed hereto as Exhibit 1 and pay an initial license fee in the amount of $10,000 and annual maintenance fees as specified in the Application License Agreement and the Operations Manual. The annual maintenance fees are subject to an annual CPI adjustment
Source: Item 22 — CONTRACTS (FDD pages 70–72)
What This Means (2025 FDD)
According to the 2025 Brain Balance Franchise Disclosure Document, franchisees are required to pay an initial license fee of $10,000 and annual maintenance fees for the Application License Agreement. The specific timing of when these annual maintenance fees must be paid is not detailed in this excerpt, but it is stated that the fees are specified in the Application License Agreement and the Operations Manual. The annual maintenance fees are subject to Consumer Price Index (CPI) adjustments. The Application License Agreement remains in effect for the duration of the Franchise Agreement, granting the franchisee unlimited users for the center.
It is important for prospective franchisees to review the Application License Agreement and Operations Manual carefully to understand the exact due dates and payment terms for the annual software license fees. Knowing the payment schedule will help franchisees manage their cash flow and avoid late payment penalties. The documents will also outline how the CPI adjustment is calculated and applied to the annual fees, which can impact the overall cost of the license over time.
Since the exact timing of the annual maintenance fee payment is not specified in this section of the FDD, it is recommended that prospective Brain Balance franchisees ask the franchisor for clarification on the payment schedule. Understanding the terms and conditions of the Application License Agreement is crucial for making an informed investment decision.